Jan 30, 2013 4:30pm PST
on the economy. >> reporter: last quarter, defense spending fell off the fiscal cliff. as lawmakers bickered, manufacturers who make things for the pentagon cut back production sharply-- defense spending fell 22% in the latest g.d.p. report, tipping the economy into the red. >> certainly manufacturers are pulling back and i think this is a bit of a wake up call that these cuts are real and that they have real effects on the economy. >> reporter: economists and markets did not panic over the drop into the red, because the economy is still showing signs of solid growth. businesses are still buying equipment and software. housing continues to bounce back. and consumer spending held up well, expanding at an annual rate of 2.2%. >> so if you look through some of the volatile components, demand underneath was solid and it doesn't suggest the economy is losing momentum. so a scary headline number isn't as bad as it seems when you look underneath. >> reporter: and that's what economists say federal reserve policy makers did. after studying the economy for two days, chairman ben bernanke and his coll
Jan 31, 2013 4:30pm PST
leading one small business to create new jobs. >> susie: an intense day on capitol hill for defense secretary nominee chuck hagel. the former republican senator from nebraska took a grilling at his confirmation hearing. lawmakers from both sides of the aisle questioned him about his controversial views on gay rights, sanctions for iran, and former president george w. bush's policies in iraq. but in spite of the turmoil, hagel is expected to get cfirmed by a narrow margin. >> tom: an update on failed futures brokerage firm peregrine financial, its founder, russell wassendorf senior was sentenced to 50 years behind bars. he' received the maximum sentence after admitting to engaging in fraudulent activity and misleading regulators for almost two decades. wassendorf also was ordered to pay $215 million, the amount prosecutors say he cost clients. the 64-year-old said he is "very sorry." >> tom: a couple of media giants today highlighted the challenges of an industry under-going great changes. business at viacom slowed down at the end of last year. advertising at the company's cable t.v.